Past research focusing on large firms has argued that information
technology (IT) capability enhances firm performance. However, these studies
have seldom explored why firms develop IT capability, and have also left a void the
understanding of the role of IT capability in Small- and medium-sized enterprises
(SMEs). This study attempts to fill that void by examining the effect of relevant
environmental and firm-level factors on IT capability, and the effect of IT capability
on the export performance of Chinese and US born-global firms, a special breed
of export-focused SMEs. Results indicate that environmental factors such as
information intensity, and firm-level factors such as international entrepreneurial
orientation, prompt born-global firms to develop IT capability. Further, our results
also strongly emphasise the positive role that IT capability plays on the performance of born-global firms. Finally, a comparative analysis of the Chinese and US
born-global firms revealed a lack of a cross-cultural difference in the factors
leading these firms to develop IT capability, therefore supporting the ‘convergence’
perspective in cross-cultural research